Greaves Cotton rose 3.82% to Rs 163.20 at 11:40 IST on BSE after the company announced a technology partnership with US-based Pinnacle Engines for the launch of a BS VI-compliant engine for 3-wheelers in India.The announcement was made after market hours yesterday, 13 June 2017.
Meanwhile, the S&P BSE Sensex was down 20.51 points, or 0.07% to 31,082.98.
On the BSE, 60,000 shares were traded in the counter so far, compared with average daily volumes of 50,265 shares in the past one quarter. The stock had hit a high of Rs 164.65 and a low of Rs 160 so far during the day. The stock hit a record high of Rs 178 on 4 May 2017. The stock hit a 52-week low of Rs 115.20 on 26 December 2016.
The stock had underperformed the market over the past one month till 13 June 2017, rising 0.58% compared with 2.58% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 5.02% as against Sensex's 5.80% rise. The scrip had also underperformed the market in past one year, rising 13.87% as against Sensex's 17.84% rise.
The mid-cap company has equity capital of Rs 48.84 crore. Face value per share is Rs 2.
Greaves Cotton and US-based Pinnacle Engines Inc announced a technology partnership for the launch of a revolutionary Opposed Piston Petrol/CNG lean burn BS VI-compIiant engine for 3-wheelers in India.
As per the agreement, Pinnacle will grant license to Greaves Cotton for manufacturing and selling 3-wheel Pinnacle Engines and 2 Wheel (110 CC) Pinnacle Engines. Greaves Cotton has agreed for $7.5 million milestone-linked payment and 5% royalty to Pinnacle Engines.
This move is seen as an important milestone for Greaves to establish itself as a leading fuel agnostic powertrain solutions & services company.
This also allows Greaves access to export markets with large 3-wheeler population. With this advanced horizontal opposed piston design engines, Greaves aims to offer BS VI compliant high power and fuel efficiency engines with lower maintenance cost that results in higher savings to the end customer. This partnership enables Greaves, currently the market leader in the 3-Wheeler diesel engine space, to enter the larger 3-wheeler petrol/CNG space, with a powerful customer value proposition.
The partnership leverages strengths on both sides, provides opportunities to enter new markets and customer segments. The innovative technology offering from Pinnacle Engines, coupled with the vast experience of Greaves in world class manufacturing, will create a superior value package for the end customer in the Indian and overseas markets. The agreement between the two companies was signed in California, US.
Pinnacle Engines is a US-based mobility technologies company. A pioneer in the field of Opposed Piston Engine architecture, utilizing a proprietary hardware design and electronic control, Pinnacle's unique lean-burn four stroke engine is protected by over 170 patents. The technology is now ready to be taken into the Indian 3-wheeler market, providing a highly differentiated customer value proposition.
Net profit of Greaves Cotton rose 19.13% to Rs 46.77 crore on 3.40% decline in net sales to Rs 390.73 crore in Q4 March 2017 over Q4 March 2016.
Greaves Cotton is one of the leading engineering companies in India with core competencies in diesel/ petrol engines, farm equipment and Gensets. The company sustains its leadership through six manufacturing units which produce world class products backed by comprehensive spares and service through its 3500 plus service outlets across India.
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